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Published byWinifred Eaton Modified over 6 years ago
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ArcelorMittal: Transforming Sales and Operations Planning with SAP® Integrated Business Planning
ArcelorMittal is a global leader in integrated steel production represented in more than 60 countries worldwide. Its Brazilian arm which comprises segments as flat steel, long steel, wires, mining and distribution operates 27 business units with a total annual production of 13 million tons of steel. ArcelorMittal Brazil, flat steel business unit, was looking to transform its Sales and Operations Planning processes by deploying a central solution that helps them support and provide a solid structure for the sales and operations planning in Brazil. They had found that SAP Integrated Business Planning would best fit their needs to support their decision-making processes for balancing demand and supply, including to integrate financial and operational planning, and to link high level strategic plans with day-to-day operations to ultimately drive profitability and performance.
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ArcelorMittal: Transforming Sales and Operations Planning with SAP® Integrated Business Planning
Company ArcelorMittal Brazil, business unit Flat Steel, is part of ArcelorMittal, the world’s leading steel and mining company Headquarters Vitoria, Brazil Industry Metal & Mining Products and Services Flat steel products for major markets including automotive, construction, pipe and tube, appliance, container and machinery Employees 6,000 Web Site Partner SAP Consulting Objectives Link strategic business planning with detailed planning and execution Provide transparency, agreement and joint decision-making on how to balance demand and supply Increase collaboration between sales, supply, manufacturing and distribution Manage key performance indicators, including on sales forecasts, inventory, product productivity and others to align goals across different business functions Why SAP Implemented the SAP Integrated Business Planning (SAP IBP) solution to increase planning process transparency Easy to use user interface, especially for sales representatives entering data into an Excel UI Collaboration between different organizations enabled via JAM SAP is a trusted partner for ArcelorMittal for a long time using a wide SAP portfolio Resolution Established a strong governance structure with split of responsibility and ownership of processes Align cross-functional end-to-end planning process Analysis of forecast accuracy per sales representatives to ensure correct sales forecast Benefits Definition of an aligned plan between different organizations (sales, logistics, planning etc.) Faster decision-making via collaboration and based on profitability Ease of creating simulation scenarios Unique source of information for all departments contributing to the S&OP process Lower Inventory Levels Better Quality of Stock Better Sales Forecast “SAP Integrated Business Planning helped us to improve our S&OP process, enabled us to make decision based on profitability, increased sales forecast accuracy, reduced inventory and got quickly adapted by end users." Marcelo Campus, Integrated Planning Manager, ArcelorMittal Brasil, “SAP Integrated Business Planning helped us to improve our S&OP process, enabled us to make decision based on profitability, increased sales forecast accuracy, reduced inventory and got quickly adapted by end users." Marcelo Campus, Integrated Planning Manager, ArcelorMittal Brasil,
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